Question

Which among the following statement is INCORRECT?

a) On a linear demand curve, all the five forms of elasticity can be depicted’
b) If two demand curves are linear and intersecting each other then coefficient of elasticity would be same on different demand curves at the point of intersection.
c) If two demand curves are linear, and parallel to each other then at a particular price the coefficient of elasticity would be different on different demand curves.
d) The price elasticity of demand is expressed in terms of relative not absolute, changes in Price and quantity demanded.​

Answer 1

Answer:

Option (b) If two demand curves are linear and intersecting each other then coefficient of elasticity would be same on different demand curves at the point of intersection.

Answer 2

Among the following the " INCORRECT " statement is

(c) If two demand curves are linear, and parallel to each other than at a particular price the coefficient of elasticity would be different on different demand curves.

As the percentage change in price and percentage change in demand are divided together and it is coefficient of elasticity.

Hence the both demand curves(linear and parallel) have same coefficient of elasticity and same changes in both quantity and demand.

Coefficient of elasticity

It is a term used to represent the percentage change in quantity in demand due to the impact of price change in goods and services.